BILATERAL SALES OF AGREEMENT/DEED OF ABSOLUTE SALES

Good Day Atty.,

Since 1977 nakatira na kami dito sa lugar namin, and I was 3 years old that time. Nag-patayo ng bahay ang parents namin dito with concerned ng land owner (vendor) and they have an agreement to pay a monthly rental. Year 2002 the land owner (vendor) agree to sell this parcel of land to my parents which is our house located. Installment basic, the land owner (vendor) received a certain amount to my parents as a down payment. The land owner (vendor) execute the BILATERAL SALES OF AGREEMENT stipulated....."the remaining balance shall be payable in 2 years at an interest rate of 12% per annum, delayed payments will be subjected to a penalty of 2% per month". I'm OFW that time sa Middle East, year 2003 nag-resigned me sa work at 'yong final settlement na nakuha ko sa company ang ipinangbayad namin para ma i-fully paid 'yong balance.

January 2004 nag-execute ng ABSOLUTE DEED OF SALES 'yong land owner (vendor).

First week of June 2009, the vendor passed away and the documents (BILATERAL SALES OF AGREEMENT/ABSOLUTE DEED OF SALES) not yet notarize 'till now.

One more Attorney, na verify namin na 'yong land title ay nakapangalan pa sa kapatid ng vendor. Sister ng vendor, at namatay itong single. Base on documents (BILATERAL SALES OF AGREEMENT/ABSOLUTE DEED OF SALES) given by vendor to my parents stipulated the following statements:

WHEREAS THE VENDOR HAD ACQUIRED A PORTION OF A PARCEL OF LAND BY VIRTUE OF A DEED OF ABSOLUTE SALES DATED __________ AND DULY NOTARIZED BEFORE NOTARY PUBLIC ______________________ ON ___________ AND ENTERED INTO HIS NOTARIAL BOOK NO. _________, PAGE ___________, DOCUMENT NO. ________, SERIES OF _______, COVERED BY TRANSFER CERTIFICATE OF TITLE NO. _________ OF THE REGISTRY OF DEEDS OF CALOOCAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS.......

Atty., here more information regarding the land:

FATHER (deceased) which is the land belong.
HEIR'S (deceased/single/with TCT) one of the father heir's and vendor sister, which is the vendor acquired a portion of a parcel land.
VENDOR (deceased with heir's) the one who sell the land to my parents by virtue of a Absolute Deed of Sales.

Atty. ito po ang mga katanungan ko:

1. Pano po namin ipapa-notary 'yong mga documents kung patay na 'yong vendor?
2. Magkano po ba ang cost pagnagpa-notary?
3. Possible po ba kaming kumuha ng certified true copy ng Absolute Deed of Sales ng vendor sa Attorney na nag-notarized nito, and how much the cost?
4. Ano po ba ang ibig-sabihin ng EXTRA JUDICIAL SETTLEMENT FROM VENDOR, at pano ba kami makakakuha nito?
5. Ano po ba ang mga steps para ma i-transfer na 'yong land title sa parent ko?
6. Tanging sa papel lang po ang ini-issue ng vendor sa lahat na ibinayad namin sa kanila, pero meron pong signature ng vendor. Katibayan na nag-bayad kami sa kanya, okay lang po ba ito?
7. What possible happen in the future regarding this matter?

I'm 36 years old now and my parents are both old. 3 generation na po ang nakakalipas. Sana po ma bigyan ninyo ng kasagutan ang mga tanong ko, nag-woworry kami baka mabaliwala ang mga pinaghirapan namin ng parents ko.

We appreciate and thankful for having this site.

Thank you and God Bless...

You mentioned that the title of the land is still in the name of the vendor’s sister and there is no showing that the vendor has been authorized by his sister by virtue of a Special Power of Attorney to sell the property. Under the circumstances, the Deed of Absolute Sale alone executed by the vendor in favor of your parents, even if notarized, will not be sufficient to transfer ownership of the property in the name of your parents. This is because the vendor is not the registered owner of the property at the time of the sale.

In the Deed of Absolute Sale, it is indicated that the property was acquired by the vendor through a Deed of Absolute Sale. If that is the case, the title of the property must first be transferred in the name of the vendor. The Deed of Absolute Sale executed by the vendor and his sister will have to be registered with the Register of Deeds in order to transfer the title in the name of the vendor. Of course, the various taxes (capital gains, documentary stamp tax, transfer tax) must be paid first with the BIR. Definitely, there will be corresponding penalty for the late payment of taxes. After the property has been transferred in the name of the vendor, only then can the Deed of Absolute Sale executed in favor of your parents be recognized. Since this is another transfer, various taxes will again be paid with the BIR before the Register of Deeds can issue a new title in favor of your parents. Penalties will again be imposed by the BIR because the taxes of the property have not been paid on time. Note that the taxes must be paid within 30 days from the date of execution of the Deed of Absolute Sale. To avoid the penalty, it is better to execute anew another Deed of Absolute Sale so that your parents can pay the taxes on time.

If there is no Deed of Absolute Sale executed in favor of the vendor by his sister, the vendor can have the title transferred in his name by settling the estate of his deceased sister. This can be done extra-judically either through the execution of: (a) Affidavit of Self- Adjudication in case the vendor is the sole heir of the estate of his deceased sister; or (b) Deed of Extra-Judicial Settlement of Estate in case there is more than one heir to the estate of the deceased sister. Again, taxes (estate tax, doc. stamp tax, transfer tax) will have to be paid to the BIR before the Register of Deeds can allow the issuance of a new title in favor of the vendor. In settlement of estate, taxes must be paid within 6 months from the death of the decedent. In this case, penalties will also be charged due to the late settlement of the estate.